|
|
Post by krazeeboi on Oct 1, 2008 0:34:26 GMT -5
I thought this was just a tad bit more important than Bishop Weeks's libido.
Thoughts?
For one, I'm in Charlotte, and Citigroup just bought out Wachovia, which is headquartered here and is the 2nd largest employer in the region, so we're really on pins and needles here locally.
What are you guys' thoughts on the $700 billion bailout?
|
|
|
|
Post by Poetricia (G.A.P.) on Oct 1, 2008 6:13:10 GMT -5
I thought this was just a tad bit more important than Bishop Weeks's libido. ;D ;D ;D You are so right, kb. Thanks for starting this thread. I saw a little cartoon during the news last night that really broke down what happened with the banking industry. It really helped me understand in a very basic way what's going on and from what I can understand, while the bailout will rescue the banking industry, the trickle down affect is that it will end up helping the average Joe Blow who may need to borrow money during this horrible recession. So while many think that the banks shouldn't be bailed out. If they're not, it will wind up further hurting you and me. And that is the saddest part of all. |
|
|
|
Post by Nikkol on Oct 1, 2008 6:51:24 GMT -5
|
|
|
|
Post by giantsdodie on Oct 1, 2008 8:29:14 GMT -5
The reality is there is no choice. Without Goverment help you will see a domino affect. The biggest issue is that America runs on credit and it is not being extended. People in general believe its a bail out of Wall Street. The problem with that thinking is that it is short sighted. WIthout a flow of credit you will see more banks closing. you will see your interest rates climb on credit cards, the higher your debt to credit ratio is the more it will hurt you, Homeowners will not be able to get loans to buy or build homes. People will not be able to refinance or get second mortages which will lead to more foreclosures. This would reduce tax revenue for counties and cities etc etc.....
it could be very very bad....
|
|
|
|
Post by Poetricia (G.A.P.) on Oct 1, 2008 9:22:20 GMT -5
Yes Giants, that's the understanding I had after listening to all the commentaries and news stories and then seeing the animated explanation on the nightly news last night. What you've stated is exactly what I gathered. Thanks for your post!
And you're right, the domino effect will hurt us all.................
|
|
|
|
Post by vin on Oct 1, 2008 9:52:00 GMT -5
I think it's gonna crash no matter what.
How do you all think this relates to James 5? Or do you think it does at all?
|
|
|
|
Post by kitty on Oct 1, 2008 11:41:30 GMT -5
Hey Guys,
Giant and others who have a decent understand of this... can you gives us a general break down?
Because I'm concerned that we are bailing out banks and companies that may have done more than give out a bunch of unfixed loans for houses... i think many companies where lying about their bottom lines and pulling Enron type of situations...
So we bail them out... Do the people who lost their homes get to keep them? How is the common man really being helped?
Or is this an even bigger situation on a mass scale similar to where the airline companies claim to be going broke... file for bankrupcty, dump their pension plans and not want to pay their pilots.... Then the ceo's still walk away with millions of dollars... While now we the tax payers are responsible for taking care of the pilot and all employees of the airline because the company basically lied and stole the money... Thus stressing out tax payers and social security even more?
Is this just the same mess on a bigger scale? What about the fact that there were certain laws place in effect from the time that there was a depression to prevent this kind of mess from happening again yet the republicans voted to repeal it and now this mess?
I can't say I'm for the bail out... I think we going to have a depression anyway and I'm not sure I believe in trickel down economics....
Kitty
|
|
|
|
Post by Nikkol on Oct 1, 2008 12:36:30 GMT -5
|
|
|
|
Post by nina2 on Oct 1, 2008 16:02:24 GMT -5
That's very true, Giants. I also think that, as close to home as this entire situation hits, it is critical to keep in sight the broader picture.
When you say "America runs on credit..." it is very real, it is also a fact that it does, as a nation. So, to have a better understanding of the real implications of the events, it is important to keep up with the info regarding the World Bank, its members, and watch what is/has been happening at that level and for a good while.
Even as it is, and what seems like a plethora of information, it is still only the tip of the iceberg that we are allowed to see through the media, not the whole picture.
I am not an expert, but for example, it has been a while that the dollar has been going down, and among others, China has chosen as it happened and while it lasted to "float" their currency in order to not sink their own economy in the process. If they feel strong enough now, or in the near future, and decide that they don't have to do that anymore, the bail out won't make any difference, anyway.
That's not counting the fact that even before it all blew out, there were also a lot of problems with foreign banks trying - and succeeding - in buying out american banks, and that too had been going on for a few years now. So, this here, has been in the making at the top levels for a good while.
My concern is also, because of the upcoming elections, that the situation, sadly enough, will be exploited for selfish, political reasons and other ulterior motives which have nothing to do with the welfare of the people of this country.
There are major shifts happening in the main "world powers" at large, financially and otherwise. The world as a whole is being reshaped.
This, and other factors, is the reason why, in answer to KB's original question, the so called bail out, to me, is nothing but a band aid on a wooden leg.
|
|
|
|
Post by giantsdodie on Oct 1, 2008 18:08:53 GMT -5
The " bail out " is not a fix all. And i agree it is a band aid. However it is a much needed band aid. There are numerous factors that have created this mess and I am not a finance expert.
However what I do know is that while most people think that they are not affected by what goes on with Wall Street. They assuming they are bailing out these companies and the attitude I have been seeing is " They got themselves in this mess let them collapse "
However the ripple effect that would cause is very serious. For example. AIG collapses. America's largest insurance company. They insure houses, cars, people, businesses, contruction projects etc etc.. in NY state alone thats 8500 jobs direcly related to AIG.
Wamu has already failed. Wachovia.. failed.. Lehman Brothers.. the ripple goes outward until touches everything. It might not touch you right away... but it very well might...
Simple example... The credit crunch will lead to credit card companines and banks raising interest rates ( which WaMu did right before its collapse.. one reason I paid off all my WaMu cards the minute I heard their rates were going up )
So now you are spending MORE on your purchases than before, and that hurts your wallet.
WaMu services many smaller impovershed communities. They are now owned by Chase. Chase charges very high bank fees and these fees affect these communties a great deal.
The ripple goes on...
|
|
|
|
Post by krazeeboi on Oct 1, 2008 19:42:10 GMT -5
I'm just hoping that whatever version of the bill passes has some sort of provision for these banks repaying this money when they regain stability. I heard this is how a similar prior bailout occurred (it might have been the Savings & Loan debacle of the early 80's).
Anything that paralyzes the credit market will spell nothing but the highest order of disaster for our economy.
|
|
|
|
Post by giantsdodie on Oct 1, 2008 20:35:05 GMT -5
Im almost sad to say this but christians and black folks need to take better care of their finances and need to have a much better understanding of what transpires in todays market.
|
|
|
|
Post by zelica on Oct 2, 2008 1:38:31 GMT -5
Im almost sad to say this but christians and black folks need to take better care of their finances and need to have a much better understanding of what transpires in todays market. You are so right Giants I am a witness.......and to be in total finacial freedom I know it is important to give your tithes....but I find myself struggling so much, I havnt even been able to give my tithes for awhile and I know its not good...and I often cant even afford to buy my medications, food, its awlful the state that we are in here in America...I pray that things gets better soon |
|
|
|
Post by giantsdodie on Oct 2, 2008 8:38:50 GMT -5
Im almost sad to say this but christians and black folks need to take better care of their finances and need to have a much better understanding of what transpires in todays market. You are so right Giants I am a witness.......and to be in total finacial freedom I know it is important to give your tithes....but I find myself struggling so much, I havnt even been able to give my tithes for awhile and I know its not good...and I often cant even afford to buy my medications, food, its awlful the state that we are in here in America...I pray that things gets better soon I hear what you are saying Jessica and I fully understand financial crunch situations. What I am saying is we need a better understanding of how GOD's system works and how the world's system works as well. God will give us wisdom of how to handle our finances and we also can study and learn as well. |
|
|
|
Post by nina2 on Oct 2, 2008 12:51:36 GMT -5
A big amen to that... I saw this on the Dave Ramsey's site: www.daveramsey.com/etc/fed_bailout/Did you see it already? Do you agree? He has a lot of advice about getting rid of credit in general and credit cards more specifically. Considering where we are globally, do you think that it is even possible/feasible for people - including christians - to even begin to function without credit or credit cards? |
|
